MS Amlin returns to capital markets with $45m Asian reinsurance sidecar

Lloyd’s global specialty re/insurer  MS Amlin has returned to the ILS market with the launch of its largest third special purpose reinsurance vehicle (SPRV) Phoenix 3 Re, which is solely focused on pan-Asian property catastrophe risks.

Phoenix 3 Re has secured over $45 million of collateralised capacity, more than its predecessors Phoenix 1 Re and Phoenix 2 Re. Alongside an increased underwriting risk appetite, this gives MS Amlin Asia Pacific (MS AAP) close to $83 million of capacity through its Phoenix vehicles, to support local Asian cedents.

The SPRV will also provide a quota share to MS AAP for its select reinsurance portfolio written via its underwriting platform in Singapore, and complements existing SPRV, Phoenix 2 Re, in terms of ceded business and structure.

MS AAP has worked in conjunction with the Monetary Authority of Singapore (MAS) again to establish Phoenix 3 Re, using an insurance-linked securities (ILS) catastrophe bond grant, with support from Hong Kong-based ILS specialist ILS Advisers, part of the HSZ Group.

Will Ho, CEO of MS Amlin Asia Pacific, said: “I am delighted we have launched Phoenix 3 Re, the latest and largest of our special purpose vehicles. Over the last two years, with the performance of Phoenix 1 and 2 Re, we have cemented our reputation and demonstrated our reinsurance credentials to investors, advisors, cedents and MAS. This has enabled us to secure more investment and offer more capacity for local cedents.

"We are in the midst of a tough trading and investment environment, so against this backdrop, the confidence shown by these important stakeholders in MS Amlin, is extremely gratifying. My thanks to everyone involved, particularly HSZ, MAS and Lloyd’s Asia for their continued support.”

Tim Yip, executive director, ILS Advisers, commented: “With Phoenix 3 being the latest and largest supported issuance of the three Phoenix offerings from MS Amlin Asia Pacific, who again are leading the way in terms of developing investment offerings focused on emerging Asia growth. We are very pleased to see the continued increasing comfort level that investors are gaining with this diverse region and perils, and the value that diversifying investment opportunities can add to ILS portfolios if structured and compensated correctly.

"This is a transaction that has been issued and arranged out of Asia, supported by Asia based service providers, sponsored by an Asia based underwriting team and directly provide capacity specifically for emerging Asia, which shows that Singapore can be a hub to attract alternative capital as a source of valuable capacity to support the significant insurance protection gap facing the largest growing and most natural catastrophe exposed region in the world.”

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